Question

Samantha puts $800.00 into an account to use for school expenses. The account earns 11% interest, compounded annually. How much will be in the account after 10 years? Round your answer to the nearest cent.

Answer 1

$2271.54

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Compounded Interest Formula:
`A=P(1+(r)/(n) )^(nt)`

• A is final amount
• P is principle amount
• r is rate
• n is compound
• t is time in years

Explanation:

Step 1: Define

P = 800.00

r = 0.11

n = 1

t = 10

Step 2: Find A

1. Substitute [Formula]:
   `A=800(1+(0.11)/(1) )^(1(10))`
2. Divide/Multiply:
   `A=800(1+0.11 )^(10)`
3. Add:
   `A=800(1.11 )^(10)`
4. Exponents:
   `A=800(2.83942)`
5. Multiply:
   `A=2271.54`